PCP or Personal Contract Purchase So, what is PCP? Well, this gives you the opportunity to choose a vehicle as well as the deposit, a maximum mileage and the length of the agreement. Once the agreed period is over, you will then be able to buy the car outright at an amount that has already been agreed upon. This amount is known as the GMFV (Guaranteed Minimum Future Value). If you do not want to buy the car outright then you can always return it back to the lender so long as it meets the sufficient fair wear and tear limits.
Once the agreement is over you can choose between these three options:
Option 1 - You can renew your vehicle. This means you can leave Tates with your old vehicle there and then, and you can use any excess value over the GMFV as a deposit on your next new vehicle.
Option 2 - Return it. So long as the car has not exceeded the agreed fair wear and tear limits, as well as the agreed mileage, you can return it with nothing more to pay.
Option 3 - Retain the car. All you have to do is pay the GFV (Guaranteed Future Value) and you own the vehicle.